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Hi Loz
I am like yourself studying for my Level 3 exam, I have just completed the Kaplan Book and completed the mock exam in question.
I will try and answer your question, the clubs policy is to depreciate assets at 20% per annum straight line.
The brought down figure in the Machinery & Equipment A/C after the sale of the old machine and the purchase of the new machine is £67,500. Multiply £67,500 by 20% = £13,500. This is transferred to the I & E A/C.
I hope this helps, if you need any further help, please let me know.
Regards
Chris
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